Pressure over conflict-of-interest rules forces the chair of the Tax Practitioners Board to recuse himself from its investigation into KPMG’s data misuse scandal. He previously worked as a KPMG partner for almost 25 years, leaving the firm in 2013.
Earlier this month, the chair adopted a special conflict management plan that blocks him from discussing the KPMG investigation with staff or fellow board members. Under that plan, all communication inside the regulator about KPMG investigation matters must run through board member and academic Kerrie Sadiq.
The arrangement follows his admission that he failed to disclose being briefed by a KPMG audit partner about the case. He also acknowledged describing the KPMG whistleblower as a “disgruntled” employee, an assessment that sharpened concerns over his impartiality.
In evidence to parliament, the chair has stressed that he holds no current financial or employment ties with KPMG. He has nonetheless confirmed attending several KPMG-sponsored lunches in recent years.
He also serves on three boards that rely on KPMG as their external auditor, a link that intensifies scrutiny of his role on the tax regulator.
